Business Briefing: Target the Almost Rich

Keywords: Market Segmentation, Consumer Behavior, Marketing Strategy, Pricing Strategy, Affluent Consumers
Source: Harvard Business Review
Link: Read the full article on HBR.org
Authors: Brian A. Johnson and Paul F. Nunes
Published: June 2002
Est. Read Time (Original): ~20 minutes

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The Core Idea

Johnson and Nunes identify a hugely profitable, yet underserved, market segment: the "almost rich." This group, the top 20% of earners who aren't yet truly wealthy, has seen their incomes grow significantly, but their spending has lagged behind, creating a massive, untapped "earnings surplus." The authors argue that this group opts to save because marketers fail to provide compelling alternatives; mass-market products lack appeal, and true luxury goods are out of reach. The strategic challenge is to influence their choice to spend by creating offerings specifically for them.

Why It Matters for Business Today

This article provides a clear roadmap for unlocking a major source of organic growth by focusing on a specific, high-potential customer segment that is hiding in plain sight.

• Identifies a $100 Billion+ Opportunity: The gap between the income growth and spending growth of the "almost rich" represents a massive, uncaptured revenue opportunity for companies that can give this group a reason to spend.

• Moves Beyond Incrementalism: The authors argue that traditional marketing—creating new uses for old products or making small improvements—is not enough. Capturing this market requires a deliberate strategy to create new value propositions at new price points.

• A Practical Three-Part Playbook: The article offers three concrete tactics to win over the almost rich:

  1. Price Higher—or Lower: Create premium-but-accessible offerings (like Starbucks or Titleist Pro V1 balls) or entry-level luxury products (like a sub-$30k Mercedes).

  2. Tier Your Offerings: Introduce elite versions of services that allow customers to pay for a better experience (like concierge healthcare or special access at theme parks).

  3. Widen (or Embed) Your Channels: Serve different segments within the same retail footprint by creating differentiated "stores within a store" (like Best Buy's high-end A/V section).

The Strategic Question for Leaders

The "almost rich" are choosing to save because the alternatives are less attractive than money in the bank.

Beyond your mass-market offerings, what specific, premium-but-accessible product or tiered service are you creating to give this high-earning segment a compelling reason to spend their discretionary income with you?

Share your perspective in the comments below.

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